2026 TPSS P2 Q11

Medishield Life is a national health insurance scheme for Singaporeans. The household monthly income per person is used to determine the subsidies available to Singaporeans for the payment of Medishield Life. Its formula is as follows:

\(\text{Monthly household income per person}=\dfrac{\text{Total Gross Household Monthly Income}}{\text{Number of Family Members in the Household}}\)

https://www.moh.gov.sg/managing-expenses/schemes-and-subsidies/medishield-life/medishield-life-premium-and-subsidy-tables/

1. 1. Mr Tan lives with his two parents who are not working. All three of them are Singaporeans. He earns a monthly gross income of \(\$8000\). Calculate Mr Tan’s monthly household income per person.[1]
   2. Mr Tan’s mother is 65 years old in 2026. Her Medishield Life yearly premium is \(\$1200\) before any subsidies shown in Table A. She is also entitled to an additional Merdeka subsidy of 5% of the amount after any subsidy applied. Calculate the yearly premium amount that she has to pay.[2]
2. Mr Tan’s mother will be undergoing hip-replacement surgery in October 2026. Table B shows the estimated bill for the surgery under 4 different wards. Medishield Life covers a certain percentage of a Singaporean’s hospital bill, while the rest of the bill is payable via Medisave and /or cash. Table C shows Mr Tan’s estimated expenses for the month of October 2026.

   TABLE B: ESTIMATED HOSPITAL WARD PLAN CHARGES
   Item Description	Amount (SGD)
   	A (Single Bed)	B1 (4 Beds)	B2 (6 Beds)	C (8 Beds)
   Ward Charges, Operation Fees & other Miscellaneous Charges	\(\$32000\)	\(\$29000\)	\(\$17000\)	\(\$15000\)
   Less: Percentage the total bill from Medishield Life Payout	\(35\%\)	\(43\%\)	\(70\%\)	\(90\%\)
   Less: Medisave Account Payout	\(\$10000\)	\(\$10000\)	\(\$3500\)	\(\$3500\)

   TABLE C: MR TAN’S ESTIMATED EXPENSES IN OCTOBER 2026
   HDB Flat Monthly Mortgage	\(\$400\)
   Credit Card Minimum Payment	\(\$500\)
   Miscellaneous expenditure: Food, Transport, Utilities	\(\$300\)
   Mother’s hospitalisation bill in cash	??

   The Debt-to-Income Ratio (DTI) measures one’s ability to pay for their monthly expenses. As a general guide, DTI should not exceed \(\dfrac7{20}\), for one to comfortably manage their monthly expenses.
   \(\text{Debt-to-Income Ratio (DTI)}=\dfrac{\text{Total Monthly Debt / Expenses Payments}}{\text{Gross Monthly Income}}\)
   Mr Tan would like to put his mother in a ward with fewer than 8 beds.
   The hospital offers a 12-month interest-free instalment plan for bill payment after the deduction of payout from Medishield Life and Medisave Account shown in Table B.
   Mr Tan can choose to pay the cash portion of the hospitalisation bill via the 12-month interest-free instalment plan or pay in full.
   Determine the hospitalisation ward plan Mr Tan should choose for his mother and his mode of payment. Justify your answer with mathematical calculations and state any assumptions you made.[6]